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Avago Technologies Limited (AVGO) is engaged in the design, development, and supply of analog semiconductor devices with a focus on III-V based products.
Its product portfolio comprises RF power amplifiers, RF filters, RF front end modules, ambient light sensors, low noise amplifiers, proximity sensors, multimarket-wave mixers, diodes, fiber optic transceivers, serializer/deserializer ASICs, optical laser and receiver components, motion control encoders and subsystems, optocouplers, LEDs, and industrial fiber optics.
The companys products are used in cellular phones (iPhones), consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, data communications, smart phones, base stations, core routing and transport, in-car infotainment, motor controls, factory automation, displays and lighting, power isolation, power conversion, and renewable energy systems applications. It markets its products through a network of distributors and its direct sales force worldwide.
The company sells products to original equipment manufacturers of wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computing peripherals markets.
Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock.
52-Week Trading Range: $52.96 to $107.38
Entry Point: $104.87
Stop Loss: $99.60
Target Price: $115.30
AVGO 30 days expired but We are staying in AVGO through its earnings on 2/25/2015 since we expect a strong report.
AVGO reports today after the close. We have set our stop loss at $110 to protect our gains. Last Trade at $112.32.
Avago technical comments before earnings - The chart is classically bullish, notably more so since the market lows of October of last year. The range of the price channel has narrowed considerably in the last two weeks, which is typical of pre-earnings announcement behavior. On positive news, a test to the life high and 52-week high at $113.81 would be highly probable as would a breakout to new highs. In that event a run to the $115 to $125 area would likely happen, dependent on the degree of positive surprise. If the news is a disappointment, there is considerable risk on the downside given the velocity of price change in the prior four months. The first major support level down would be the 50-day moving average at $104.15. If there were a breakdown below that level, next supports would be at $99.66 and $95.18. Breaking the 50-day on the downside would turn the longer-term trend to bearish.
We are taking profits on AVGO at $122.
